Over the past week, the cryptocurrency markets have continued to make slow but steady gains.

Especially over the weekend as Bitcoin crossed the $4k threshold several times, but failed to hold above the important figure initially, but as of writing has consolidated at $4,021.

The markets have continued to see green across the board, and there is a positive feeling among the community that we could be potentially pushing up to $4200 pretty soon — a figure we had not reached since November last year.

There is also an indication on the Bitcoin trading charts, of a potential break upwards for the markets.

BTC has been trading between the 100MA and the McGinley Dynamic indicator for several days now.

The McGinley Dynamic indicator was created as a solution to the problems of using Moving Day averages. MA’s are often inappropriately applied- moving averages in different periods operate with varying degrees in different markets. For example, how can one know when to use a 10-day to a 20- to a 50-day moving average in a fast or slow market?

Moving averages also failed to follow prices since large separations frequently existed between prices and moving average lines. So the McGinley Dynamic indicator was created to avoid the moving averages problems and have an indicator that would hug prices more closely, prevent separation price, and follow prices automatically in fast or slow markets.

This is relevant as since February the McGinley Dynamic has been acting as support for BTC in the daily timeframe. Moreover, the 100MA has been acting as resistance.

The price action has begun to coil and trade very closely within the range between the two indicators. Along with this volume has declined considerably- combined with the current nature of BTC action, this is usually the hallmarks of a potential break to the upside for price action.

If this does happen and we get a strong daily close above the 100MA, the path of least resistance would be to the 200MA around the $4400-4800 mark.

While it does seem a bullish phase could be in store for BTC, as with cryptocurrencies, it can go the other way and drop back to $3300-3600 levels. However here’s hoping the action continues to the upside.